Eclipse at Calypte

Calypte Biomedical is to undertake a restructuring plan that will focus its efforts on its rapid test and blood-based incidence test products. As a result of implementing this plan, Calypte expects to make 66% of its workforce redundant, reducing its labour force to 20-25 employees.

The company expects its operating expenses to decrease by approximately 50% from the 2004 burn rate of over $1m per month and $12.8m per year to less than $7m per year.

Under the restructuring plan, Calypte will consolidate its U.S. manufacturing, administrative, and r&d operations into one site in the Portland, Oregon area, where the majority of the r&d staff is currently based.

Dr Richard George, president and ceo said: 'This has been a very difficult decision. The employees of Calypte have been an extremely dedicated and gifted group of people who have worked tirelessly in getting us to where we are today. Nonetheless, I have an obligation to our stockholders, and the opportunities that I see emerging globally from the rapid test platform and incidence test compel me make a tough decision about how and where to allocate our resources.'

Richard Brounstein, executive vice president and chief financial officer said: 'This initiative allows Calypte to focus its capital resources on the global launch of its rapid product line, the products that we believe represent a compelling opportunity. Calypte's administrative team plans to maintain the company's internal controls and corporate governance standards throughout the transition to a new staff in Portland and will ensure a seamless conversion throughout this process.'

As part of the restructuring, Calypte has entered into a non-binding letter of intent to sell its urine EIA, serum Western Blot and urine Western Blot HIV in vitro diagnostic business. The terms of the sale are currently being negotiated.